Lehman CEO Made $480 Million

...While Company Collapsed

 October 7. 2008

Lehman's chairman and chief executive Richard Fuld. Am I the only one seeing Lemony Snicket (Count Olaf)?

Lehman's CEO Richard Fuld got roughed up by a few senators in Congress yesterday, during a somewhat acrimonious hearing, that really did not answer enough pertinent questions as to how said executive made $450 million dollars while the company fell to pieces. He danced around many of the questions, not giving forthright answers.

He's not alone in exorbitant compensation for poorly performing executives, particularly CEOs, which is highly inappropriate for failing companies, especially ones they do not even own.

Angelo "Tan Man" Mozilo of Countrywide walked away with $170 million for destroying the aforementioned company through predatory lending.

It is my belief these failed CEOs should be forced to forfeit their golden parachutes and it should go to the taxpayers to help repay the debt these executives have run up and the damaged they've caused the nation.

If the government wiped out Fuld and Mozilo, including their other assets, it would gain nearly a billion dollars in forfeitures for the U.S. taxpayers.

'Your company is bankrupt, you keep $480m. Is that fair?'

It was a showdown to cherish for critics of Wall Street's culture of enrichment. The grim-faced boss of the bankrupt bank Lehman Brothers was left squirming yesterday as a veteran Democrat roasted him over his multimillion-dollar pay.

With the startled look of a man unaccustomed to sharp examination, Lehman chief executive Richard Fuld clashed bluntly with the chairman of the House oversight committee, Henry Waxman, on Capitol Hill.

Called on to explain why Lehman collapsed last month, Fuld began with a note of humility, saying he felt "horrible" over the demise of the 158-year-old institution. "I want to be very clear," Fuld said. "I take full responsibility for the decisions I made and for the actions I took."

In a brief speech which was heard in silence, Fuld told legislators that if he could turn back the clock he would do many things differently. As soon as he finished speaking, sparks began to fly.

The chairman of the committee held up a chart suggesting that Fuld's personal remuneration totalled $480m (£276m) over eight years, including payouts of $91m in 2001 and $89m in 2005.

"Your company is now bankrupt and our country is in a state of crisis," said Waxman, a liberal from California. "You get to keep $480m. I have a very basic question: Is that fair?"

http://www.guardian.co.uk